FBD Holdings PLC Interim Management Statement (7228E)
May 15 2013 - 2:00AM
UK Regulatory
TIDMFBH
RNS Number : 7228E
FBD Holdings PLC
15 May 2013
FBD Holdings plc
Interim Management Statement
15 May 2013
FBD Holdings plc ("FBD" or the "Group") is issuing the following
interim management statement covering the first quarter of 2013 and
the period up to the date of this statement. The Interim Management
Statement will be presented to Shareholders at the Annual General
Meeting of the Company being held in Dublin, Ireland, at 12 noon
today.
Highlights
-- Further market share gains and marginal growth in premium income.
-- Large claims experience ahead of historic norm but likely to revert to norm in full year.
-- Profit before tax in line with market expectation, aided by strong investment performance.
-- Previous operating earnings per share guidance re-affirmed.
Underwriting
The Irish insurance market continued to be very competitive in
the first quarter of 2013. This was evidenced by the level of
marketing activity and the pricing of home insurance risks,
although there have been some indications that business insurance
rates are hardening. We believe that the Irish insurance market
continued to contract in the first quarter of 2013.
Despite the difficult market environment, FBD gross premium
written to the date of this statement is marginally ahead of the
previous year. Policy volume is marginally higher while average
revenue per policy was maintained at the same level as the previous
year. The increase in policy volume comes from No Nonsense and
growth in business insurance with customers choosing to purchase
through brokers. No Nonsense has shown strong growth, particularly
since the introduction of "ready-made" and telematics late last
year. FBD continues to demonstrate discipline by only increasing
volume where returns are adequate.
The Group made further progress in managing claims costs,
particularly in those areas within its control including risk
selection, claims management initiatives and underwriting
improvements. While an improved attritional loss ratio and the
absence of severe weather events to the date of this statement are
positives, large accident claims experience is ahead of prior year
and historic norm. As a result, the loss ratio is higher than both
market expectation and the level achieved in 2012. The frequency of
large claims is inherently volatile and in any short period
variation in the number of claims is to be expected.
Underwriting expenses and longer-term investment return were
both in line with expectations.
Non Underwriting
The Group's financial services businesses continued to perform
in line with expectation.
The Group's share of the trading result of the property and
leisure joint venture was ahead of 2012.
Profit before taxation
Profit before tax is in line with market expectation, aided by
strong investment performance.
Balance Sheet
The positive trading performance year to date further bolstered
the Group's strong capital base. Fixed interest securities and bank
deposits represent 87% of underwriting investment assets. In the
current uncertain investment market, FBD's short-term conservative
investment position continues to be appropriate.
Outlook
Irish domestic demand has stabilised but is unlikely to show
significant return to growth in the short-term. It is unlikely that
the Irish Insurance market will show any growth in 2013. However,
we are confident that FBD's continued focus on agri customers, the
opportunities provided by No Nonsense and the development of
business insurance with customers choosing to purchase through
brokers will provide FBD with the potential to again outperform the
market in 2013. It is likely that full-year large claims experience
will revert to historic norms.
The Group is re-affirming its previous guidance - full-year 2013
operating earnings per share of between 145 and 155 cent, excluding
any exceptional events that may arise.
For Reference
FBD Holdings plc Telephone
Andrew Langford, Group Chief Executive +353 1 409 3208
Cathal O'Caoimh, Group Finance Director
Peter Jackson, Head of Investor Relations
Murray Consultants
Joe Heron +353 1 498 0300
About FBD Holdings plc ("FBD")
FBD is one of Ireland's largest property and casualty insurers
looking after the insurance needs of farmers, private individuals
and business owners. The Group, which was established in the 1960s,
has developed complementary financial services businesses.
The following details relate to FBD's ordinary shares of EUR0.60
each which are publicly traded:
Listing Irish Stock Exchange UK Listing Authority
Listing Category Premium Premium (Equity)
Trading Venue Irish Stock Exchange London Stock Exchange
Market Main Securities Market Main Market
ISIN IE0003290289 IE0003290289
Ticker FBD.I FBH.L
Forward Looking Statements
Some statements in this announcement are forward-looking. They
represent expectations for the Group's business, and involve risks
and uncertainties. These forward-looking statements are based on
current expectations and projections about future events. The Group
believes that current expectations and assumptions with respect to
these forward-looking statements are reasonable. However, because
they involve known and unknown risks, uncertainties and other
factors, which are in some cases beyond the Group's control, actual
results or performance, may differ materially from those expressed
or implied by such forward-looking statements.
FBD Holdings plc FBD House, Bluebell, Dublin 12
Registered in Dublin, Ireland Registered Number 135882
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
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